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DEPARTMENT OF TRANSPORTATION
The Department of Transportation (DOT) is responsible for the nation’s freedom of movement—ensuring there are sufficient and safe roads, rails, airways and seaways to keep the country in motion and its economy growing. Established in 1967, DOT sets federal transportation policy and works with state, local, and private sector partners to promote a safe, secure, efficient, and interconnected national transportation system. DOT’s operating administrations have wide-ranging duties related to operating or overseeing various transportation sectors, but they share a common commitment to fulfill these national objectives. OverviewThe Transportation Security Administration (TSA), the newest DOT organization, was established to enhance security for the traveling public. Other DOT agencies are organized by mode of transportation, including two large and well-known agencies, the Federal Aviation Administration (FAA) and the Coast Guard. FAA’s responsibilities range from controlling the nation’s air traffic system to regulating the safety and maintenance standards of U.S.-operated airlines. The Coast Guard acts as the fifth branch of the armed services and its missions extend from enforcing the fisheries laws, to cleaning up oil spills, to guarding the nation’s maritime borders from illegal migrants and drugs. Several DOT agencies manage grant programs that will provide over $34 billion in 2003 to state and local transportation agencies for airports, roads, highways and transit systems. These infrastructure programs help reduce congestion and expand travel options. DOT also regulates highway, rail, and pipeline safety to reduce accidents and fatalities. The laws authorizing surface and aviation transportation programs will expire after 2003. The Administration will work with various stakeholders and the Congress to develop legislative proposals to continue the nation’s investment in air, highway and transit systems. Ensuring Transportation Security
The events of September 11, 2001, underscore the importance of transportation security as part of America’s homeland security. Protecting airports, seaports, bridges, highways, and mass transportation against the threat of terrorism is an imperative. In 2003, added emphasis on this mission will be reflected in resources for personnel, technology and equipment to meet transportation security challenges. The President signed the Aviation and Transportation Security Act, establishing the Transportation Security Administration, into law on November 19, 2001. TSA’s main mission is to increase airline and airport security. TSA will play a critical role, coordinating with the White House Office of Homeland Security, federal, state, local, and private partners, to enhance the safety of the nation’s transportation infrastructure.
The Aviation and Transportation Security Act imposed tight deadlines and stringent aviation security requirements for DOT to implement. TSA was created to be responsible for airport passenger screening at every U.S. airport with commercial air service. Its staff includes law enforcement officers, Federal Air Marshals, and passenger and baggage screeners. The TSA will continue to improve baggage screening processes to enhance the safety of passengers, while facilitating travel. In addition to aviation, TSA will be the focal point for the security of the entire national transportation system; a system administered in large part by states and localities. This budget meets these challenges, and the Administration has embarked on an aggressive effort to gauge progress constantly.
In 2003, the TSA will continue implementing a comprehensive aviation security program. Funding is being provided to accelerate deployment of an array of explosive detection technology so that all baggage loaded into aircraft is safe. The TSA will continue efforts to improve security at airport screening locations and speed the flow of passengers at these checkpoints. During the year, the TSA will complete the hiring of over 30,000 Federal airport security personnel, including screeners, armed guards, and supervisors for every screening checkpoint. To upgrade aviation security, the TSA will hire, train, and deploy an enhanced team of Federal Air Marshals. The budget provides $4.8 billion in funding for the TSA, with an estimated $2.2 billion of the 2003 costs to be raised through passenger and air carrier fees.
The TSA and the Coast Guard will jointly develop and execute the maritime component of homeland security. This work is crucial because 95 percent of the nation’s international trade moves by water. The Coast Guard will maintain the viability and integrity of marine transportation security by providing additional personnel to increase port security and assess the needs of critical seaports throughout the nation. The budget provides $5.7 billion in discretionary funding for the Coast Guard, including $406 million for increased port security. The budget also proposes a commercial navigational user fee to help pay for increased port security needs. Improving Transportation Safety
Most Americans rely on some combination of car, transit, and airplane travel to carry out daily personal and business activities. Much of the effort of promoting and increasing transportation safety centers on raising safety awareness. The economic cost of motor vehicle crashes alone is more than $150 billion annually. The human toll on victims and their families is catastrophic. Just as important as transportation security is DOT’s goal to increase safety for the traveling public. To achieve this, the Department works with communities to educate the public about safety requirements and establishes safety standards for transportation industries. The 2003 Budget proposes nearly $8 billion for transportation safety programs to meet the Department’s safety goals. Aviation SafetyFAA aims to prevent aviation fatalities by preventing accidents. For example, accidents are prevented by reducing air traffic controller and pilot errors and by minimizing aircraft incidents (such as engine failures). Of particular concern is pilot or controller error resulting in “runway incursions” on or near active airport runways. Runway incursions happen when aircraft on or near runways do not maintain required distance from each other or from a vehicle or other object on the ground. A resulting collision could mean a catastrophic loss of life, and there have been a disturbing number of close calls in recent years. In 2001, there were 52 serious runway incursions, an improvement from the 67 incidents in 2000. But continued vigilance is needed. The budget provides $107 million for the development and use of new technologies and systems to help prevent incursion-related accidents. An additional $122 million is provided to improve pilot and controller training and increase visibility through improved runway surface markings.
Surface Transportation SafetyTraffic crashes claimed a total of 41,800 lives in 2000, accounting for over 90 percent of transportation-related deaths. Fatalities declined from 47,100 in 1988, but have remained relatively flat since 1992 despite significant increases in the number of vehicles on the country’s roads. The Federal Motor Carrier Safety Administration (FMCSA) and the National Highway Traffic Safety Administration (NHTSA) are charged with regulating highway safety under DOT’s umbrella. FMCSA, created in 1999, oversees the safety of the commercial truck industry. It seeks to reduce the number of highway deaths resulting from truck and bus crashes. The agency is committed to helping reduce fatalities by 50 percent, from 5,380 in 1999 to less than 2,700 in 2009. To achieve this goal, FMCSA will concentrate on improving its federal oversight program by increasing federal and state inspections on the roadside and at motor carriers’ facilities, and improving the Commercial Driver Licensing program. In 2003, $190 million will go to states to help them implement highway safety programs. In 2003, the Administration will pay special attention to FMCSA’s southern border safety enforcement program. The United States will fulfill its commitment to Mexico under the North American Free Trade Agreement and allow travel by Mexican trucks to begin in 2002. Some $68 million will be devoted to conduct on-site safety inspections in Mexico of motor carrier facilities by U.S. inspectors. A renewable 90-day decal with monitoring systems to ensure compliance with truck safety rules will be instituted. Another $47 million is provided in 2003 for border safety infrastructure under a program to fund highway projects along the U.S. borders. NHTSA aims to reduce highway fatalities and injuries by decreasing alcohol-related highway fatalities from 17,219 in 1997 to 11,000 in 2005, and by increasing seat belt usage from 69 percent in 1997 to 90 percent in 2005. To achieve these goals, the budget provides $200 million for NHTSA’s safety research and information programs, and $225 million for grants to states for their highway safety programs. Maritime SafetyThe Coast Guard aims to minimize boating accidents while striving to rescue as many people as possible when accidents occur. Overall, recreational boating fatalities have declined since the 1970s. In 2000, the Coast Guard recorded 742 fatalities—the lowest number of deaths to date. This marks a 50 percent reduction from the 1970s, even as the number of recreational boats more than doubled. In 2001, the Coast Guard answered more than 39,000 calls for help, saving 4,184 lives of mariners in imminent danger. To improve on this in 2003, the Coast Guard will increase staff and modernize equipment. The budget funds a $90 million initiative to modernize a “maritime 911” system. It will improve existing Coast Guard capabilities through broader coverage, ensuring that emergency calls get through and adding high quality location finding technology to speed Coast Guard response. Intercity Passenger Rail Service
The Congress created the National Rail Passenger Corporation (Amtrak) in 1971 as a for-profit corporation to provide a national rail passenger system. Although it initially received federal subsidies, the intent was for Amtrak to graduate from requiring federal financial support. Amtrak has utterly failed to meet this expectation. The federal government has provided about $24.2 billion to Amtrak since its creation (see accompanying table). Since 1979, Amtrak has failed to increase significantly the number of passengers it carries. Currently, Amtrak’s share of the nation’s intercity passenger market amounts to only one-half of one percent of all passenger miles, compared to more popular means of transportation such as auto (50 percent), air (48 percent), and intercity buses (1.5 percent).
On November 9, 2001, the Amtrak Reform Council (ARC), an oversight board set up by the Congress, concluded that Amtrak would fail to achieve its statutorily mandated goal to run its business profitably and without federal operating assistance by December 2, 2002. As a result, the ARC will announce an Amtrak restructuring plan on February 7, 2002, in accordance with the Amtrak Reform and Accountability Act of 1997.
In its 31-year history, Amtrak has never posted a profit. It has accumulated about $20.4 billion in operating losses over that same period, for an average annual operating loss of approximately $660 million, excluding federal grants. It recently mortgaged Pennsylvania Station in New York over a 16-year period to cover approximately three months of operating expenses, a financial absurdity equivalent to a family taking out a second mortgage on its home to pay its grocery bills. Other recent efforts to infuse new cash into this futile system include:
Amtrak is clearly in desperate financial condition. In May 2001, Amtrak president George Warrington stated that Amtrak could not continue indefinitely under current circumstances, a conclusion shared by the Amtrak Reform Council in its November finding. The Administration agrees.
The Administration believes that passenger train service should be founded on a partnership between the federal government, the states, and the private sector. Such a partnership would encourage the operation of passenger trains offering high-quality, cost-effective service on viable routes or where the states have declared a public need they are willing to fund. The Administration is eager to work with the Congress to develop solutions that result in a cost-effective, financially stable system that can help meet the public’s travel needs. Pending development of a new paradigm for passenger rail service, the budget requests the same level of funding as provided in 2002. Improving Transportation MobilityAnother major DOT strategic priority is to enhance the free flow of passengers and goods. Over the last 20 years, travel for all modes of transportation, especially highway and air, has increased significantly. Surface TravelBetween 1980 and 1999, highway passenger miles traveled increased almost 60 percent. Federal spending on highway projects also increased significantly, from $15.5 billion in 1992 to $28.5 billion in 2003. Under the Transportation Equity Act for the 21st Century (TEA–21), highway spending is adjusted each year according to a formula in law that reflects the most recent data on highway-related receipts. In 2000, 2001, and 2002 highway spending was increased significantly by these annual adjustments. However, for 2003 this formula will produce a reduction in the amount of new commitments of highway spending, due in large part to a previous overestimate of actual receipts in 2001. Even so, in 2003 actual spending on highway construction, including the continuation of prior-year projects, will fall less than three percent from its all-time high in 2002. 2003 highway spending will be 40 percent higher than in 1998, the first year of TEA–21. The downside of growth in travel is increased road congestion. For example, in 1987 a trip during peak travel periods took 16 percent longer than it would have taken in uncongested conditions (about 10 minutes more for a one-hour trip). In 1999, a trip taken during peak travel period took 15 minutes more for a one-hour trip. Traffic delays also lead to increased fuel consumption and higher levels of vehicle emissions. In 1999, the nationwide cost of wasted time and extra fuel consumption alone was estimated to be $78 billion. Without efforts to reduce congestion, it is projected that congestion will increase by 0.5 percent each year. DOT’s goal is to slow the projected growth of congested travel by 0.2 percent each year. The Federal Highway Administration (FHWA) has implemented a range of strategies to address traffic jams. These include development and deployment of Intelligent Transportation Systems (ITS), which provide more information to drivers faster, enabling them to take the most efficient route of travel. The 2003 Budget proposes $23.5 billion in federal funding for highways to identify and construct a mix of locally preferred road projects to reduce congestion and add new capacity to the highway system. Transit also contributes to reducing road congestion. Transit passenger miles traveled increased 23 percent from 1980 to 1999. In 2000, transit ridership increased to 9.4 billion trips, the highest ever. In 2003, the budget provides $7.2 billion for the Federal Transit Administration (FTA) to help congested regions buy more buses and build new rail systems. Within this amount, the Administration will seek authorization of $145 million for the President’s New Freedom Initiative to make transportation more accessible for the disabled. Air TravelDOT has faced significant growth in demand for air travel, with air passenger miles increasing 123 percent from 1980 to 1999. As the aviation system adjusts to new security protocols, flight delays could return to pre-September 11th levels. DOT must continue expanding aviation capacity by more rapidly modernizing our airspace infrastructure and cutting red tape to speed construction of planned airport runway projects. The budget provides over $1.3 billion in FAA system modernization to improve mobility, and $3.4 billion for airport improvement activities. In 2003, FAA seeks to improve airport efficiency rates (an indicator that gauges how many aircraft move through these airports against capacity levels) for our busiest airports to 95 percent. To create a business-like aviation environment, by 2003 the DOT and FAA intend to implement a performance-based organization (PBO) that would focus on improved management and coordination of air traffic services and capital investments. This organization will be headed by a Chief Operating Officer and combine resources and staff from FAA's air traffic control, research, and acquisition lines of business, all of which contribute to FAA’s ability to provide efficient air traffic control services. Current measures of performance—such as delays and runway incursions—point to management challenges in improving the operation of the current air traffic system. The new organization is intended to address some of these weaknesses by establishing performance goals for individual staff, and the organization as a whole, so that progress and advancements can be measured. The Administration plans to evaluate the effectiveness of the PBO after a year of operation. If significant improvements in air traffic services are not achieved, the Department will look to other options, including partial privatization and franchise operation of components of the air traffic system. Status Report on Select ProgramsThe 2003 Budget provides a total $53.6 billion in discretionary resources, including a variety of management initiatives, to improve the performance of DOT programs. The budget increases funding for core programs, cuts unnecessary subsidies and proposes reforms to strengthen program management. It seeks to identify weaknesses, showcase effective programs, and present and meet performance goals.
Congressional Earmarks and Corporate Subsidies
Across the spectrum of transportation programs, congressional earmarks undercut the Department’s ability to fund projects that have successfully proved their merits. In many cases, these earmarks divert funds to lower priority projects. This can result in the disruption of construction schedules for higher priority projects and increase the financing costs for the sponsors of these projects. In 2002, the Congress earmarked over 1,400 projects in the Department of Transportation, totaling $3.2 billion. Transit ProjectsThe FTA is authorized by law to provide over $3 billion a year in competitive grants for local transit projects, including new bus purchase, new rail line construction, and assistance to maintain existing rail infrastructure in older systems. However, for 2002, the Congress earmarked every dollar of FTA’s bus and new rail starts programs. As a result, worthy projects cannot compete on their merits and funding does not go to areas with the greatest needs. For example, in 2001, DOT requested $50 million to assist the Los Angeles County Metropolitan Transportation Authority (LACMTA) purchase 523 buses to relieve overcrowding and meet the requirements of a consent decree. Instead, LACMTA got only $4.5 million, delaying the purchase of the buses.
Highway ProjectsThe FHWA administers over $300 million in authorized competitive grant programs. States submit applications for funding and FHWA awards funding based on merit. Since 2000, almost all of the funds have been earmarked for specific projects. This practice eliminates the competitive aspect of these programs and leaves aside many meritorious projects that went through the application process. Elimination of Unnecessary Corporate SubsidiesThe Department’s Maritime Administration provides federally guaranteed loans to U.S. shipyards and shipbuilding companies. In many cases, these loan guarantees expose taxpayers to substantial risk. For example, a recent bankruptcy risks defaults on federally guaranteed loans of over $350 million in 2002. The Administration believes that this program represents an unnecessary federal subsidy. The budget requests no funding for this program in 2003. Shipbuilders and shipyards could and should seek to improve their competitiveness without relying on federal subsidies or exposing taxpayers to the costs of their failures. Strengthening ManagementIn addition to the Administration’s focus on improving the performance of specific government programs, the Department also seeks to make substantial progress on the five government-wide management priorities.
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